Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Has anyone got link to the latest Turner Pope note that DrR referred to? I cannot find it on their site, last note is from March. The table within it indicates that the required expenditure for Phase 2 is $4m per year. So whether the clock is running on Phase 2 and if so from when is a very important point. https://www.turnerpope.com/wp-content/uploads/2023/04/OrosurMiningInc._Research_Update_2_March_2023__FINAL_BG.pdf
In my view it has started, the RNS states that MMA "have earned 51%". The exact date will be determined by the contract conditions, and confirmation of Phase 2 start date was within the questions I emailed to the company. It should be obvious that these things should be communicated properly.
ISpy, fair questions. My thinking was along the lines that Agnico seem to be causing some of the friction, wanting terms changed, perhaps wanting a bigger piece of the pie, drilling in the wrong direction to turn up nothing then downing tools, Brad's comment "they can bugger off". etc. I have no evidence other than the snippets gained by paying attention but there is friction somewhere. Hopefully this can be resolved and re-start drilling at Anza, that is the only thing that matters for OMI share price.
DrRem: "Ideal case scenario for me is we go back solely with Newmont, no Agnico, they fund us and let the Orosur team lead exploration." I agree and perhaps this is a scenario in play? Agnico will want compensated for their investment to date. Or it could be the other way around and Agnico wanting to take over. Who knows and Brad may not even know, he cannot be expected to know the strategy of two majors unless they tell him and agree it can be made public.
This upcoming webinar is the first I can remember where I literally have no idea what the outcome will be. If there are no contractual protections against MMA non-performance we are screwed and stock goes lower.
re: voting rights, I cannot recall the details of how it came to light that our votes via the usual retail brokers were not being counting, I have a vague recollection that there was a vote on options and a lot of us said NO via our brokers but OMI claimed that 99% of votes where YES. Please correct me if I am mistaken. Can we not ask OMI to provide evidence of the votes obtained ? They are likely to say it is not their problem if our broker fails to notify them of our vote.
No excuses left for them now, if they are not buying on this dip then we need to vote them out and make complaints to the market authority if our votes are being barred.
Terrible article written by someone who hasn't the faintest idea of what they are talking about, and clearly did not even spend 30 minutes looking at the history of the project and drill results to date.
I have emailed these to Brad also. No doubt he got a lot of emails hence the webinar. The main ones from me:
1) Is there any contractual protection against MMA sitting on Anza as 51% owner for the life of the mining concession, yet do nothing to progress?
2) Any penalties for non-performance of Phase 2 obligations?
3) Has a new company been formed with MMA/OMI 51/49% ownership? If not, who holds the mining concessions at present?
If getting Brad to read these posts we should bump Jackbals "bean-headed gimp" to the top
I cannot purchase any more until I understand what contractual protections we have against a complete mothball by MMA, in particular if they decide to sit on this for years.
Reading between the lines it appears that OMI has transferred the concessions to MMA upon their "earning 51% of the project". If so, MMA holds all the cards unless the JV agreement, including any recent Phase 2 amendment, states otherwise. There must be something in the contract to prevent them sitting on the project and doing nothing for years, for example, what if they fail to meet the Phase 2 obligation, do they still own 51% after 4 years and can therefore sit on Anza as they please into the future? Perhaps wait for OMI to go bust then they own it all for not spending a penny? Happy for anyone with knowledge of mining JVs to chip in as to what the usual terms would be.
Yes Jackbal, although those comments were around the negotiations. It seems Brad is saying negotiations have concluded for now, which raises many more questions, e.g. has a new company been formed? If not, who is the legal owner of the Anza mining concessions at present? As holders we have every right to material information about agreements that have been entered into around ownership of our main asset.
So we are now a minority holder in our flagship project with no indication of when anything might move forward. Genius stuff. I hope there are harsh penalties in the contract for a Phase 2 failure to perform. MMA surely cannot be permitted to sit on the project for years, not pay anything, and then keep their 51% while OMI goes broke? I have emailed Brad. Lack of transparency around the contract is shocking.
What happened with GGP? Their major walked away and how did that cause price to boom exactly? Did they find a new JV partner or dilute to fund project progression themselves?
good points Bandit. I am furious with the lack of transparancy into JV terms, where does this mothballing leave us legally if Phase 2 simply passes for 4 years do OMI get 100% ownership back? I am going to have to email the company and ask for clarification of terms. Furthermore, all info is now in the public domain so I expect to see director buys, they no longer have any excuse on this.
Just trying to process how this might have played out. MMA wanted to change the terms of the JV, Brad said NO, so they are trying to smoke OMI out of the game by doing absolutely nothing for 3 years? What a terrible contract that allows this, Phase 2 should have been structured that $5m would be spent each year over 4yrs or suchlike.
If I understand correctly, Phase 2 requires $20m to be spent over 4 years, of which $4m has been "carried forward". Firstly, I was not aware of any such carry forward clause, was this in the original contract? Secondly, if MMA choose not to progress we could be left sitting for another 3 years in this position before we can seek other investors as we are now locked into Phase 2. I have to say I did not see this coming. It stinks of a major fall-out.
Yela, we are thinking along the same lines, I posted a few months ago that a new agreement might have a minimum buyout clause which could rocket the share price overnight. Good luck to those sitting on the sidelines waiting for an RNS to buy back in.
I would be surprised if there was any further negotiating between MMA and Orosur on JV terms. The payment of the $2m likely indicates all terms agreed and the delay here is around best structure for the new JV company so that the Columbian gov does not screw us, perhaps there is an element of working with the gov on this and as we know gov is very very slow.
Jackbal, no companies will disclose granular aspects of negotiations like you seem to think investors should have knowledge of. None. There could be one or two minor points still on the table for negotiation, there could be a major point, who knows but at least the $2m was paid, as with all data points investors can make of that what they will. My view has not changed, I am a buyer under 8p for sure, no other opportunity comes close in my view.